8/18/2019 Eb Mod Mock Questions
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A bank which provides very large amounts of finance to business customers in a particular industry may be exposedto
Select one:
a. Capital concentration risk
b. Credit concentration risk
c. Diversification risk
d. Capital adequacy risk
Feedback
he correct answer is: Credit concentration risk
Question 2
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$lag question
Question text
A commonly used method of measuring investment risk inequities and bonds is the
Select one:
a. Capital asset pricing model
b. Capital value pricing model
c. Asset value pricing model
d. %anking book pricing mode
Feedback
he correct answer is: Capital asset pricing model
Question 3
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Question text
A credit policy review should occur at which stage of a bank's credit process(
Select one:
a. Credit control) review and analysis
b. Credit recovery
c. Credit administration and monitoring
d. %usiness origination
Feedback
he correct answer is: Credit control) review and analysis
Question 4
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$lag question
Question text
A document issued by a customer to an investment
manager which specifies the investment ob*ectives of aninvestment portfolio is known as an
Select one:
a. +nvestment indemnity
b. +nvestment mandate
c. +nvestment instruction
d. +nvestment waiver
Feedback
he correct answer is: +nvestment mandate
Question 5
+ncorrect!ark #.## out of ".##
$lag question
Question text
A large investment portfolio) established to pool the
investment funds of many different investors or beneficiaries is referred to as an
Select one:
a. +nvestment company
b. +nvestment fund
c. +nvestment cooperative
d. +nvestment cluster
Feedback
he correct answer is: +nvestment company
Question 6
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$lag question
Question text
A market trading strategy in which a bank seeks to offsetevery market transaction as quickly as possible with a
transaction in the opposite direction is known as
Select one:
a. !arket,to,market trading
b. !arket making
c. -edging
d. A matched book
Feedback
he correct answer is: A matched book
Question 7
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$lag question
Question text
A measure of the sie of movements in a market price andalso the unpredictability of the direction of changes in
price) up or down is known as
Select one:
a. !arket volatility
b. /rice volatility
c. 0alue volatility
d. 1iability
Feedback
he correct answer is: /rice volatility
Question 8
+ncorrect
!ark #.## out of ".##
&emove flag
Question text
A reduction in the weighted average maturity of liabilitiesmay be an early indicator that
Select one:
a. 2xpected cash inflows for the bank will be higherthan anticipated
b. he bank will have to pay out more in cash sooner
than previously expected
c. 2xpected cash inflows for the bank will be lowerthan anticipated
d. he bank will have to pay out less in cash sooner
than previously expected
Feedback
he correct answer is: he bank will have to pay out morein cash sooner than previously expected
Question 9
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$lag question
Question text
A requirement for minimum liquidity for banks has beenintroduced by
Select one:
a. /illar 3 of %asel ++
b. /illar " of %asel ++
c. /illar 4 of %asel ++
d. %asel +++
Feedback
he correct answer is: %asel +++
Question 10
Correct
!ark ".## out of ".##
$lag question
Question text
A revolution which disrupts trade and markets in the
country or countries affected is an example of
Select one:
a. 1iquidity risk
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b. Socio,political risk
c. Currency risk
d. +nterest rate risk
Feedback
he correct answer is: Socio,political risk
Question 11
Correct
!ark ".## out of ".##
$lag question
Question text
A risk,free investment has a beta factor of
Select one:
a. !ore than "
b. "
c. 1ess than " but more than #
d. #Feedback
he correct answer is: #
Question 12
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$lag question
Question text
A time period in a maturity ladder is referred to as a
Select one:
a. !aturity bucket
b. $iscal quarter
c. &ung
d. !aturity period
Feedback
he correct answer is: !aturity bucket
Question 13
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$lag question
Question text
According to %ank 5egara !alaysia's Corporate
6overnance 6uidelines) who is responsible for ensuringthere are adequate and effective operational procedures andinternal controls for assessing) measuring) controlling)
monitoring and reporting of risks(
Select one:
a. Senior management
b. he board
c. he chief risk officer
d. !iddle management
Feedback
he correct answer is: he board
Question 14
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!ark ".## out of ".##
$lag question
Question text
According to the %asel framework) which one of thefollowing is an element of market risk(
Select one:
a. +nterest rate risk
b. 2vent risk
c. Systems risk
d. &eputation risk
Feedback
he correct answer is: +nterest rate risk
Question 15
Correct!ark ".## out of ".##
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$lag question
Question text
According to the minimum capital requirements proposed by %asel +++ total capital must be at least
Select one:
a. 78 of risk,weighted assets at all times
b. 98 of risk,weighted assets at all times
c. .;8 of risk,weighted assets at all times
d. "#8 of risk,weighted assets at all times
Feedback
he correct answer is: 78 of risk,weighted assets at all
times
Question 16
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Question text
According to the recommendations of the
8/18/2019 Eb Mod Mock Questions
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Select one:
a. he bank owns them and is free to sell them andthey have not been given as collateral for any borrowing
arrangement by the bank
b. hey have not been given as collateral for any borrowing arrangement by the bank
c. he bank owns them and is free to sell them
d. hey have an easily realised market value
Feedback
he correct answer is: he bank owns them and is free tosell them and they have not been given as collateral for any
borrowing arrangement by the bank
Question 20
Correct!ark ".## out of ".##
$lag question
Question text
Assets that can be sold or used as collateral for secured
borrowing are known as
Select one:
a. angible assets
b. Soluble assets
c. 1iquefiable assets
d. Dissolvable assets
Feedback
he correct answer is: 1iquefiable assets
Question 21
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!ark ".## out of ".##
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Question text
At which level of a liquidity framework is an assessment of a bank's general funding structure) and in particular the
degree of its dependency on certain known volatile marketsmade(
Select one:
a. At the first level
b. At the second level
c. At the third level
d. At the fourth level
Feedback
he correct answer is: At the second level
Question 22
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$lag question
Question text
%asel +++ recommends a countercyclical buffer for banksranging from
Select one:
a. #8 to ;8 of their risk,weighted assets
b. #.;8 to 4.;8 of their risk,weighted assets
c. #8 to 4.;8 of their r isk,weighted assets
d. #.;8 to "#8 of their risk,weighted assets
Feedback
he correct answer is: #8 to 4.;8 of their risk,weightedassets
Question 23
Correct!ark ".## out of ".##
$lag question
Question text
Cash has a required stable funding fac tor of
Select one:
a. "#8
b. ;#8
c. ;8
d. #8
Feedback
he correct answer is: #8
Question 24
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+ncorrect!ark #.## out of ".##
$lag question
Question text
Central Credit &eference +nformation System is
Select one:
a. A bad cheque offender reporting system
b. A lead information system
c. A blacklist information system
d. An internal credit information system
Feedback
he correct answer is: An internal credit informationsystem
Question 25
Correct
!ark ".## out of ".##
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Question text
Class 4 liquefiable assets for inclusion in the ad*usted
maturity profile cannot exceed what percentage of Class "liquefiable assets(
Select one:
a. ;#8
b. 4;8
c. "#8
d. ;8
Feedback
he correct answer is: ;#8
stion 26
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Question text
Consideration of whether a bank has sufficient liquidity
surplus to sustain a sudden liquidity shock arising from acrisis that is specific to the bank occurs at which level ofliquidity measurement(
Select one:
a. he second level
b. he fourth level
c. he first level
d. he third level
Feedback
he correct answer is: he second level
Question 27
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$lag question
Question text
Corporate bonds sold to the investing public must
Select one:
a. %e secured against property
b. %e risk free
c. -ave a credit ra ting from an officially recognised
agency
d. -ave a beta factor rating of "
Feedback
he correct answer is: -ave a credit rating from anofficially recognised agency
Question 28
+ncorrect!ark #.## out of ".##
&emove flag
Question text
Credit approval should occur at which stage of a bank'scredit process(
Select one:
a. Credit control) review and analysis
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b. Credit recovery
c. Credit administration and monitoring
d. %usiness origination
Feedback
he correct answer is: %usiness origination
Question 29
Correct
!ark ".## out of ".##
$lag question
Question text
Credit checking is an example of which type of riskcontrol(
Select one:
a. A detective control
b. A pre,transaction control
c. A post,transaction control
d. A corrective control
Feedback
he correct answer is: A pre,transaction control
Question 30
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$lag question
Question text
Derivative instruments are closely associated with which of the following types of transactions(
Select one:
a. =ff balance sheet transactions
b. %anking book transactions
c. -edging transactions
d. !arket making transactions
Feedback
he correct answer is: -edging transactions
Question 31
+ncorrect
!ark #.## out of ".##
$lag question
Question text
Disaster recovery plans may also be referred to as
Select one:
a. %usiness stability plans
b. %usiness contingency plans
c. %usiness continuity plans
d. %lack swan event plans
Feedback
he correct answer is: %usiness continuity plans
Question 32
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$lag question
Question text
$or the purpose of calculating a bank's liquidity coverage
ratio expected cash receipts cannot exceed
Select one:
a. 4;8 of cash outflows
b. >;8 of cash outflows
c. 9#8 of cash outflows
d. ;#8 of cash outflows
Feedback
he correct answer is: >;8 of cash outflows
Question 33
+ncorrect!ark #.## out of ".##
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&emove flag
Question text
$rom the following) who has the power to veto the grantingof credit by credit managers or personnel if the credit
arrangement will expose the bank to excessive andunacceptable risk(
Select one:
a. he chef risk officer
b. A senior manager
c. he board of directors
d. he chair of the board
Feedback
he correct answer is: he board of directors
Question 34
+ncorrect
!ark #.## out of ".##
$lag question
Question text
6overnment securities that are denominated in the
country's national currency are an example of a
Select one:
a. &isk $ree +nvestment
b. -igh &isk +nvestment
c. 1ow &isk +nvestment
d. !edium &isk +nvestment
Feedback
he correct answer is: &isk $ree +nvestment
Question 35
Correct
!ark ".## out of ".##
$lag question
Question text
+f %ank 5egara !alaysia provides emergency funding to a bank) it is acting as
Select one:
a. An emergency relief lender
b. A market maker
c. A fixed book lender
d. A lender of last resort
Feedback
he correct answer is: A lender of last resort
Question 36
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$lag question
Question text
+n regards to financial stability) which of the followingstatements is $A1S2(
Select one:
a. $inancial stability is a necessary requirement foreconomic stability and economic growth
b. +n order to achieve financial stability within a
country) there must be financial stability throughout the banking system
c. Achieving financial stability is the sole
responsibility of %ank 5egara !alaysia
d. $inancial stability is needed to provide conditions
that are beneficial to the economy
Feedback
he correct answer is: Achieving financial stability is thesole responsibility of %ank 5egara !alaysia
Question 37
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Question text
8/18/2019 Eb Mod Mock Questions
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+n the context of assessing liquidity risk) the ratio of loansto customer deposits can be described as
Select one:
a. A cash inflow
b. A net security mismatch
c. An exposure risk metric
d. A liquidity risk metric
Feedback
he correct answer is: A liquidity risk metric
Question 38
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$lag question
Question text
+n the context of %asel ++) the definition of operational risk
excludes which one of the following(
Select one:
a. 1egal risk
b. +nternal process risk
c. Compliance risk
d. Strategic risk
Feedback
he correct answer is: Strategic risk
Question 39
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Question text
+n the context of credit evaluation) which aspect of theCA!/A&+ model is concerned with determining the
percentage of the total finance needed that the bank is
willing to provide(
Select one:
a. &epayment terms
b. !argin of finance
c. Amount of loan
d. Ability to repay
Feedback
he correct answer is: !argin of finance
Question 40
Correct!ark ".## out of ".##
&emove flag
Question text
+n the context of credit evaluation) which of the ;Cs isconcerned with assessing the security of employment of an
individual in the event of an economic downturn(
Select one:
a. Capital
b. Capacity
c. Conditions
d. Character
Feedback
he correct answer is: Conditions
Question 41
+ncorrect!ark #.## out of ".##
&emove flag
Question text
+n the context of credit evaluation) which of the ;Cs isconcerned with assessing the willingness of a customer torepay borrowed money(
Select one:
a. Capital
b. Capacity
c. Conditions
d. Character
Feedback
he correct answer is: Character
Question 42
Correct!ark ".## out of ".##
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$lag question
Question text
+n the context of operation risk) the risk of losses due tofailures or weaknesses in internal processes and procedures
is known as
Select one:
a. +nternal systems risk
b. +nternal people risk
c. +nternal process risk
d. +nternal procedure risk
Feedback
he correct answer is: +nternal process risk
Question 43
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Question text
+nvesting in an investment fund is an example of
Select one:
a. /ooling risks
b. ransferring risks
c. erminating risk
d. !aximising risk
Feedback
he correct answer is: /ooling risks
Question 44
Correct
!ark ".## out of ".##
$lag question
Question text
+nvestment risk that is related to economic and other
conditions that affect market prices and investment returnsin general is known as
Select one:
a. Specific risk
b. Systematic risk
c. ?nsystematic risk
d. &esidual risk
Feedback
he correct answer is: Systematic risk
Question 45
+ncorrect
!ark #.## out of ".##
&emove flag
Question text
1iquidity risk is an example of
Select one:
a. A non,financial risk
b. A financial risk
c. A technology risk
d. An uncontrollable risk
Feedback
he correct answer is: A financial risk
Question 46
Correct!ark ".## out of ".##
$lag question
Question text
1osses incurred from adverse movements in the market
price of gold are most readily associated with which of thefollowing categories of risk(
Select one:
a. +nternal risk
b. Credit risk
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c. !arket risk
d. Capital adequacy risk
Feedback
he correct answer is: !arket risk
Question 47
Correct
!ark ".## out of ".##
$lag question
Question text
!easures taken to keep cash in a secure place) to reduce therisk of theft are an example of
Select one:
a. A non,financial control
b. An internal control
c. A financial control
d. An external control
Feedback
he correct answer is: An internal control
Question 48
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Question text
=f the following) which is an example of a credit riskreport which should be made to the board on an annual
basis(
Select one:
a. A report on all existing credit products of the bank)
the target markets for each of these products their
performance and credit quality
b. A report regarding the bank's total creditexposures) analysed by categories
c. A report regarding large concentrations of credit
d. A report regarding credit areas with high rapid
growth
Feedback
he correct answer is: A report on all existing credit products of the bank) the target markets for each of these
products their performance and credit quality
Question 49
Correct!ark ".## out of ".##
$lag question
Question text
/assword controls in computer systems to preventunauthorised access to confidential programs and files arean example of
Select one:
a. /reventative controls
b. Detective controls
c. Corrective controls
d. /re,transaction controls
Feedback
he correct answer is: /reventative controls
Question 50
+ncorrect!ark #.## out of ".##
$lag question
Question text
/lans for responding to catastrophic loss events are knownas
Select one:
a. Disaster reaction plans
b. %lack swan response plans
c. Disaster recovery plans
d. Disaster resurgence plans
Feedback
he correct answer is: Disaster recovery plans
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tion 51
+ncorrect!ark #.## out of ".##
&emove flag
Question text
/rinciple 3 of supervisory review as stated by %asel is
Select one:
a. he banking supervisor should expect banks to
operate with more than the minimum regulatory capitalrequirement and should have the authority to instruct banksto hold capital in excess of the minimum requirement
b. he banking supervisor should intervene at an
early stage to prevent the capital of a bank from falling below the minimum level required to cover its risks
c. Supervisors should review and evaluate the
internal capital adequacy assessments of banks
d. %anks should have a process for a ssessing theiroverall capital adequacy in relation to their risk profile) as
well as a strategy for maintaining their capital levels
Feedback
he correct answer is: he banking supervisor should
expect banks to operate with more than the minimumregulatory capital requirement and should have the
authority to instruct banks to hold capital in excess of theminimum requirement
Question 52
Correct!ark ".## out of ".##
$lag question
Question text
&egular buying and selling activities in financial markets)where a bank seeks to make profits from continual dealing
is known as
Select one:
a. +nvestment portfolio operations
b. %alance sheet operations
c. rading book operations
d. !arket,to,market operations
Feedback
he correct answer is: rading book operations
Question 53
Correct!ark ".## out of ".##
$lag question
Question text
&eturns after allowing for the effect of inflation as well astaxation are referred to as
Select one:
a. $orecast returns
b. 5ominal returns
c. &eal returns
d. 2xpected returns
Feedback
he correct answer is: &eal returns
Question 54
Correct
!ark ".## out of ".##
$lag question
Question text
esting the validity of a risk model by comparing actualevents with the predictions of the model is known as
Select one:
a. %ack testing
b. 2xposure testing
c. -istorical testing
d. Comparative analysis
Feedback
he correct answer is: %ack testing
Question 55
+ncorrect!ark #.## out of ".##
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&emove flag
Question text
he Central Credit &eference +nformation System holdsinformation about arrears on payments for a credit
arrangement which have occurred over the
Select one:
a. 1ast "4 months
b. 1ast "7 months
c. 1ast 4 months
d. 1ifetime of the credit arrangement
Feedback
he correct answer is: 1ast 4 months
Question 56
Correct!ark ".## out of ".##
&emove flag
Question text
he chair of a credit risk committee must
Select one:
a. 5ot be an executive director of the bank
b. 5ot be a director with executive powers to
approve the granting of credit
c. 5ot be a non,executive director of the bank
d. %e a director with executive powers to approve thegranting of credit
Feedback
he correct answer is: 5ot be a director with executive
powers to approve the granting of credit
Question 57
Correct
!ark ".## out of ".##
$lag question
Question text
he difference between average returns on investments inthe market and the risk, free rate of return is known as the
Select one:
a. !arket risk premium
b. Capital risk premium
c. +nvestment risk premium
d. Asset risk premium
Feedback
he correct answer is: !arket risk premium
Question 58
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Question text
he difference between estimates of contractual cashinflows and contractual cash inflows in a given time period
is known as a
Select one:
a. 6ross funding requirement
b. 5et funding requirement
c. Security mismatch
d. Capital mismatch
Feedback
he correct answer is: 5et funding requirement
Question 59
+ncorrect!ark #.## out of ".##
&emove flag
Question text
he document for recording risks) the assessment of risks)responsibilities for management of the risk and risk
management measures taken to deal with the risk is knownas a
Select one:
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a. &isk process mandate
b. &isk map
c. &isk register
d. &isk recovery plan
Feedback
he correct answer is: &isk register
Question 60
Correct!ark ".## out of ".##
$lag question
Question text
he ease of disposal of the assets provided as collateral
must be considered when assessing an application for
Select one:
a. Secured finance
b. ?nsecured finance
c. A current account
d. A savings account
Feedback
he correct answer is: Secured finance
Question 61
+ncorrect
!ark #.## out of ".##
&emove flag
Question text
he effect of an adverse risk event) typically measured bythe loss that will occur when an adverse risk event occurs is
known as
Select one:
a. A risk outcome
b. A risk driver outcome
c. he impact of risk
d. 2xpected loss
Feedback
he correct answer is: he impact of risk
Question 62
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Question text
he limit placed on banks by %ank 5egara !alaysia whichlimits the maximum amount of equities that !alaysian
banks can hold states that a bank's investment in shares@excluding shares in subsidiary companies must notexceed
Select one:
a. ;8 of the bank's capital base
b. 4;8 of the bank's capital base
c. ";8 of the bank's capital base
d. 4#8 of the bank's capital base
Feedback
he correct answer is: 4;8 of the bank's capital base
Question 63
Correct!ark ".## out of ".##
$lag question
Question text
he ma*or source of funding for a commercial bank is
Select one:
a. Customer deposits
b. Secured finance
c. ?nsecured finance
d. Short,term lending
Feedback
he correct answer is: Customer deposits
Question 64
+ncorrect!ark #.## out of ".##
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&emove flag
Question text
he method of calculating risk weighted assets and theminimum capital requirement for market risk) using
internal market risk models of the bank is known as
Select one:
a. +nternal &atings,%ased Approach
b. +nternal Controls,%ased Approach
c. +nternal &isk Assessment Approach
d. +nternal !odels Approach
Feedback
he correct answer is: +nternal !odels Approach
Question 65
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$lag question
Question text
he minimum liquidity coverage ratio requirement isintended to ensure that banks have a sufficient amount of
cash and high,quality liquid assets to survive a significantstress scenario lasting for
Select one:
a. "4# calendar days
b. 3# calendar days
c. " year
d. 9# calendar days
Feedback
he correct answer is: 3# calendar days
Question 66
Correct!ark ".## out of ".##
$lag question
Question text
he period of time over which 0alue at &isk is measured is
known as
Select one:
a. An observance period
b. A compliance period
c. An analysis period
d. A holding period
Feedback
he correct answer is: A holding period
Question 67
Correct
!ark ".## out of ".##
$lag question
Question text
he ratio for comparing the expected stable funding of a bank for the next year with the stable funding that it should
have in order to avoid liquidity risk is known as the
Select one:
a. 5et stable funding ratio
b. 5et stable liquidity ratio
c. 6ross stable funding ratio
d. 5et stable capital ratio
Feedback
he correct answer is: 5et stable funding ratio
Question 68
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$lag question
Question text
he ratio of an organisation's debts to equity capital isknown as
Select one:
a. Capital ratio
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b. 1iquidity ratio
c. Assets ratio
d. 1everage ratio
Feedback
he correct answer is: 1everage ratio
Question 69
Correct
!ark ".## out of ".##
$lag question
Question text
he requirement that banks have a system for the reportingof authorised and unauthorised breaches of limits to an
appropriate level of management in the bank is known as
Select one:
a. +nternal control breech reporting
b. !arket risk reporting
c. 2xception,based reporting
d. Concentration limit reporting
Feedback
he correct answer is: 2xception,based reporting
Question 70
Correct
!ark ".## out of ".##
$lag question
Question text
he risk of having insufficient cash to meet paymentobligations is known as
Select one:
a. Cash flow risk
b. Asset risk
c. Capital risk
d. 1iquidity risk
Feedback
he correct answer is: 1iquidity risk
Question 71
Correct
!ark ".## out of ".##
&emove flag
Question text
he risk that the public perception of the bank will bedamaged because of unfavourable reports about the bank inthe media) or from customer dissatisfaction with the bank's
services is known as
Select one:
a. &eputation risk
b. Commercial risk
c. %usiness risk
d. Customer service risk
Feedback
he correct answer is: &eputation risk
Question 72
Correct!ark ".## out of ".##
&emove flag
Question text
he sale of a business line by a bank is an example of a
Select one:
a. 1egal risk
b. %usiness risk
c. $unding source
d. 1iability
Feedback
he correct answer is: $unding source
Question 73
Correct!ark ".## out of ".##
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&emove flag
Question text
he total amount of credit provided by a bank) and thespread of this credit between different types of loan or
different types of customers is known as
Select one:
a. A credit portfolio
b. A banking book
c. An investment portfolio
d. A balance sheet
Feedback
he correct answer is: A credit portfolio
Question 74
+ncorrect!ark #.## out of ".##
$lag question
Question text
ier " must be at least
Select one:
a. 78 of risk,weighted assets at all times
b. "#8 of risk,weighted assets at all times
c. 98 of risk,weighted assets at all times
d. .;8 of risk,weighted assets at all times
Feedback
he correct answer is: .;8 of risk,weighted assets at alltimes
Question 75
+ncorrect!ark #.## out of ".##
&emove flag
Question text
?nauthorised data manipulation is most readily associated
with which of the following categories of risk(
Select one:
a. echnology risk
b. !oney laundering risk
c. Control risk
d. %usiness risk
Feedback
he correct answer is: echnology risk
tion 76
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Under which method of cacuating the
minimum ca!ita re"uirement for o!erationa
risk are the o!erations of a bank divided into
eight se!arate business ines in order for a
minimum ca!ita re"uirement to be cacuated
for each business ine se!arate#$
%eect one&
a. 'he (dvanced Measurement (!!roach
b. 'he )asic Indicator (!!roach
c. 'he %tandardised (!!roach
d. 'he (dvanced Indicator (!!roach
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'he correct answer is& 'he %tandardised
(!!roach
Question 77
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Fag "uestion
8/18/2019 Eb Mod Mock Questions
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Question text
Unencumbered high "uait# i"uid assets that
are easi# convertibe into cash at short notice
are
%eect one&
a. *ass + i"ue,abe assets
b. *ass - i"ue,abe assets
c. *ass 1 i"ue,abe assets
d. *ass i"ue,abe assets
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'he correct answer is& *ass 1 i"ue,abe assets
Question 78
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Question text
/hat is the !ro!osed amount of additiona
ca!ita that a s#stemica# signi,cant ,nancia
institution shoud retain in addition to the
minimum ca!ita re"uirements !ro!osed in
)ase III$
%eect one&
a. )etween +. and of risk2weighted
assets
b. )etween and 3. of risk2weighted
assets
c. )etween 1 and of risk2weighted
assets
d. )etween 1 and +. of risk2weighted
assets
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'he correct answer is& )etween 1 and +. of
risk2weighted assets
Question 79
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Question text
/hat t#!e of risk exists when the future
outcome ma# be either better or worse than
ex!ected$
%eect one&
a. Residua risk
b. %!ecuative risk
c. Inherent risk
d. 4ure risk
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'he correct answer is& %!ecuative risk
Question 80
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Question text
/hen assessing ex!ected osses5 bank ma# be
abe to assess the !robabiit# of oss from a
given risk ex!osure5 and the si6e of the oss
when an adverse risk event occurs using which
t#!e of data$
%eect one&
a. 7istorica data
b. Market data
c. 8omina !ricing data
d. (ctua !ricing data
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'he correct answer is& 7istorica data
Question 81
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/hen traveing b# car5 the sma risk that #ou
ma# be invoved in a road accident is known as
%eect one&
a. )ackground risk
b. 9e,ned risk
c. Uncontroed risk
d. 4ure risk
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'he correct answer is& 4ure risk
Question 82
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/hich as!ect of a bank:s organisation structure
is res!onsibe for ana#sing the market risk in
dai# trades in the market5 monitoring the
bank:s ex!osures to risk and checking that
ex!osures are within the imits set b#
management$
%eect one&
a. 'he bank:s midde o;ce
b. 'he board risk committee
c. 'he bank:s back o;ce
d. 'he bank:s front o;ce
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'he correct answer is& 'he bank:s midde o;ce
Question 83
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/hich as!ect of a bank:s organisation structure
is res!onsibe for recording transactions that
are made b# traders$
%eect one&
a. 'he bank:s midde o;ce
b. 'he board risk committee
c. 'he bank:s back o;ce
d. 'he bank:s front o;ce
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'he correct answer is& 'he bank:s back o;ce
Question 84
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Question text
/hich of the foowing is a borrowing faciit#
where a the avaiabe funds need not be
drawn down immediate#$
%eect one&
a. ( government bond
b. (n unsecured bond
c. ( secured bond
d. ( credit ine
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'he correct answer is& ( credit ine
Question 85
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Fag "uestion
Question text
/hich of the foowing is an exam!e of a
backist information s#stem$
%eect one&
a. )usiness and %earch Information
%ervices
b. *entra *redit Reference Information
%#stem
c. 9ishonoured *he"ues Information
%ervice
d. *redit 'i!2m!o#ees 4rovident Fund
b. ( unit trust com!an#
c. ( takafu !rovider
d. )ank 8egara Maa#sia
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'he correct answer is& 'he >m!o#ees
4rovident Fund
Question 87
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/hich of the foowing is cacuated b#
muti!#ing the current baances of various
t#!es of iabiities and o=2baance sheet
commitments b# a run2o= rate$
%eect one&
a. 'ota ex!ected cash outows
b. )anking book risk rate
c. 'ota ex!ected cash inows
d. Market iabiit#
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'he correct answer is& 'ota ex!ected cash
outows
Question 88
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/hich of the foowing is cacuated muti!#ing
the current baances of various t#!es of
contractua amounts receivabe b# rates at
which the# are ex!ected to ow in under a
stress scenario$
%eect one&
a. 'ota ex!ected cash outows
b. )anking book risk rate
c. 'ota ex!ected cash inows
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d. Market iabiit#
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'he correct answer is& 'ota ex!ected cash
inows
Question 89
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Question text
/hich of the foowing is 8
Question text
/hich of the foowing is 8
8/18/2019 Eb Mod Mock Questions
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d. 'ransact
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'he correct answer is& 'ransact
Question 93
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/hich of the foowing is the east stabe source
of funding for a bank$
%eect one&
a. %hort2term interbank borrowing
b. >"uit#
c. Retai de!osits
d. )ank bond
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'he correct answer is& %hort2term interbank
borrowing
Question 94
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Fag "uestion
Question text
/hich of the foowing statements is 'RU>$
%eect one&
a. %#stematic risk can be eiminated
through diversi,cation in the investment
!ortfoio
b. Uns#stematic risk cannot be eiminated
through diversi,cation of investments
c. %#stematic risk cannot be eiminated
through diversi,cation in the investment
!ortfoio
d. Uns#stematic risk on# a!!ies to
investment funds
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'he correct answer is& %#stematic risk cannot
be eiminated through diversi,cation in the
investment !ortfoio
Question 95
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/hich of the foowing terms describes
measures that reduce the risks for an
organisation$
%eect one&
a. Risk toerance measures
b. Mitigation of risk
c. Risk absor!tion measures
d. *om!ression of risk
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'he correct answer is& Mitigation of risk
Question 96
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8/18/2019 Eb Mod Mock Questions
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/hich one of the foowing shoud be a reiabe
source of funding for a bank in the event of a
i"uidit# crisis$
%eect one&
a. 9rawdown of unused !art of a forma
credit ine
b. Interbank borrowing
c. Issue of new shares b# the bank
d. 4urchase of unencumbered high "uait#
i"uid assets
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'he correct answer is& 9rawdown of unused
!art of a forma credit ine
Question 97
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Fag "uestion
Question text
/hich t#!e of bu=er is ke!t in reserve b# a
bank to be used when an economic boom turns
into economic sow2down or recession5 so that
bank ending need not be restricted$
%eect one&
a. ( sef2reguated bu=er
b. ( counterc#cica bu=er
c. ( market conservation bu=er
d. ( market securit# bu=er
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'he correct answer is& ( counterc#cica bu=er
Question 98
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Question text
/hich t#!e of risk imit sets a imit on the
number of transactions that mature within a
given !eriod of time$
%eect one&
a. ( voume imit
b. ( tenor imit
c. ( oss contro imit
d. ( ca!ita imit
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'he correct answer is& ( tenor imit
Question 99
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Question text
/ho gives !ermission for a bank to use its
interna risk modes for reguator# !ur!oses5 to
measure credit risk or market risk$
%eect one&
a. )ank 8egara Maa#sia
b. )ase *ommittee
c. )oard of directors of the bank
d. >xterna auditors of the bank
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'he correct answer is& )ank 8egara Maa#sia
Question 100
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8/18/2019 Eb Mod Mock Questions
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/ho is res!onsibe for deveo!ing a i"uidit#
risk management strateg# that is consistent
with the bank:s i"uidit# risk toerance$
%eect one&
a. >xecutive board members
b. %enior management
c. 'he chief risk o;cer
d. 'he chair of the board risk committee
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'he correct answer is& %enior management